Deutsche Bank warns it will miss profit target

DB warned Tuesday that it won't achieve its target for a 2011 pretax profit from core businesses of 10 billion euros ($13.2 billion), due to a tough environment for its corporate banking and securities arm, as well as further impairments on its exposure to Greece. The bank said third-quarter results in corporate banking and securities will be significantly lower than expected as the intensifying sovereign debt crisis resulted in "sustained uncertainties among market participants." The group will consider further cost-cutting measures in the division and is planning to cut 500 jobs, primarily outside Germany. In addition, Deutsche Bank said its results will reflect impairment charges of 250 million euros on Greek sovereign debt. While it won't achieve its profit target for the year, Deutsche Bank said it will still be profitable in the third quarter. Shares in the bank dropped 6.4% in Frankfurt, having been trading down around 4.8% before the announcement.

Deutsche has written off all Greek debt on their books. Might be worth a buy.